Gold: CTA whipsaws but support holds – TD Securities

Commodity strategists at TD Securities report that Commodity Trading Advisors (CTAs) have unwound recent long positions in Gold, leading to short-term whipsaws. Despite this algorithmic selling pressure, the precious metal remains fundamentally resilient, underpinned by sustained demand from discretionary investors. Analysts emphasize that Gold has held strong even following a hawkish interest rate hike by the Federal Reserve. Furthermore, the broader backdrop for precious metals remains highly supportive, aided by easing energy prices which offer immediate relief to broader market sentiment. Looking ahead, TD Securities views any potential near-term price dips driven by CTA unwinding as limited in scope. Rather than signaling a broader trend reversal, the strategists argue that pullbacks will increasingly serve as attractive buying opportunities for market participants seeking precious metals exposure.